Core Inflation Holds At 3.3% In July

The U.S. inflation remained above the Federal Reserve’s target in July, with the central bank’s preferred gauge showing continued price pressures.

According to the Commerce Department, the personal consumption expenditures price index increased 0.2% from June and rose 3.7% over the year. Both readings were slightly above expectations. Core PCE, which excludes volatile food and energy prices, also increased 0.2% monthly and 3.3% annually, matching forecasts.

The data comes as Federal Reserve officials consider their next policy move. Inflation remains well above the Fed’s 2% goal, potentially limiting room for rate cuts.

According to the report, markets currently see relatively low odds of a September rate move. Investors are also watching the Jackson Hole symposium, where Fed Chairman Kevin Warsh is scheduled to speak Friday. Treasury yields have recently reached their highest levels since 2007, adding pressure to financial markets.

Related Tweet:

Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July https://t.co/Q2cOKxvqnB

— CNBC (@CNBC) August 26, 2026

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